7 Tax-Saving Moves to Make Before March 31 — Or Pay More Tax

The clock is ticking. March 31, 2026 marks the end of FY 2025-26, and with it, your last chance to save tax for this financial year. Every year, millions of Indians scramble in the last two weeks of March to make investments that could have been planned months ago. If you are one of them — don't worry, you still have time. But not much.

Whether you are on the old tax regime or the new one, there are specific deductions that can significantly reduce your tax outgo. Here are 7 tax-saving moves you must make before the deadline. Use our Tax Calculator to see exactly how much you can save.

1. Max Out Your Section 80C Limit (₹1.5 Lakh)

Section 80C is the most popular tax-saving section in India, and for good reason — it gives you a deduction of up to ₹1.5 lakh from your taxable income. But here is the thing: many people only partially use it. Your EPF contributions count towards 80C, but they rarely fill the entire ₹1.5 lakh bucket.

The remaining gap can be filled with ELSS mutual funds, PPF, NSC, Sukanya Samriddhi Yojana, tax-saving fixed deposits, or LIC premium payments. If you have not already invested the full ₹1.5 lakh, now is the time. Check your Form 26AS or AIS to see how much of your 80C limit is already used.

2. Invest in ELSS — The Shortest Lock-In Under 80C

If you need a last-minute 80C investment and want your money back the soonest, ELSS (Equity Linked Savings Scheme) is your best bet. It has just a 3-year lock-in period — the shortest among all 80C instruments. Compare that to PPF (15 years) or tax-saving FDs (5 years).

ELSS funds invest primarily in equities, so they also give you the chance to earn market-linked returns. You can start a one-time lump sum investment right now — no SIP needed. Use our SIP Calculator to plan ongoing investments after the deadline passes.

3. Top Up Your PPF Account

The Public Provident Fund (PPF) remains one of India's safest and most tax-efficient investments. It offers tax-free returns — meaning the interest you earn and the maturity amount are both completely exempt from tax. The current PPF interest rate is 7.1% per annum, compounded annually.

You can invest up to ₹1.5 lakh per year in PPF (this counts towards your 80C limit). If you have a PPF account but have not contributed this year, log into your bank or post office account and make the deposit before March 31. Use our PPF Calculator to see how your corpus will grow.

4. Get Health Insurance — Section 80D (₹25,000 to ₹1 Lakh)

This one is often overlooked but incredibly valuable. Section 80D allows you a deduction of up to ₹25,000 for health insurance premiums for yourself and your family. If you also pay premiums for your senior citizen parents, you get an additional ₹50,000 deduction — that is a total of ₹75,000.

If both you and your parents are senior citizens, the total 80D deduction can go up to ₹1 lakh. Even if you have employer-provided health insurance, buying a personal policy gives you this extra tax benefit. And more importantly, it gives you coverage that does not disappear when you change jobs.

5. Claim the Extra ₹50,000 NPS Deduction — Section 80CCD(1B)

Here is a tax-saving hack that most salaried employees miss: Section 80CCD(1B) gives you an additional ₹50,000 deduction over and above the ₹1.5 lakh limit of 80C. This is specifically for voluntary contributions to the National Pension System (NPS).

That means if you max out both 80C (₹1.5 lakh) and 80CCD(1B) (₹50,000), you can claim a total of ₹2 lakh in deductions — just from these two sections. You can make a one-time NPS contribution online through your NPS account or your bank. Use our NPS Calculator to estimate your retirement corpus.

6. Book a Tax-Saving Fixed Deposit

If you are risk-averse and do not want to invest in ELSS or NPS, a tax-saving fixed deposit is the simplest option. It has a 5-year lock-in period, and most banks offer interest rates between 6.5% to 7.5% for the general category.

One important thing to remember: while the principal qualifies for 80C deduction, the interest earned is fully taxable. So a tax-saving FD saves you tax on the investment side but adds to your income on the interest side. Use our FD Calculator to compare returns across different tenures.

7. Submit Investment Proofs to Your Employer

This is not an investment — it is a step many people forget. If you have made all these investments but have not submitted proof to your employer, your company will deduct TDS at a higher rate from your March salary. Most companies have a deadline for investment proof submission in January or February, but some allow late submissions.

Gather your PPF passbook, ELSS statement, insurance premium receipts, NPS transaction statement, and home loan interest certificate. Submit them to your HR or payroll team immediately. If you have missed the employer deadline, you can still claim these deductions when you file your ITR and get a refund.

The Bottom Line

Tax saving is not just about reducing your tax bill — it is about building long-term wealth through disciplined investing. The March 31 deadline is a forcing function that makes you take action. Use it wisely.

Here is a quick summary of the deductions available:

Section	Limit	Best Instruments
80C	₹1.5 lakh	ELSS, PPF, NSC, Tax-Saving FD, SSY
80D	₹25,000 – ₹1 lakh	Health Insurance
80CCD(1B)	₹50,000	NPS Voluntary Contribution

Don't wait until March 31 morning. Start today.

Disclaimer: This article is for informational purposes only and does not constitute financial or tax advice. Tax laws are subject to change. Please consult a qualified tax professional or SEBI-registered financial advisor before making investment decisions. The deductions mentioned apply to the old tax regime — the new tax regime has limited deductions. Verify your eligibility based on your specific tax situation.